Systems Thinking in Manufacturing

1
Systems Thinking in Manufacturing

• Bhavya Lal
• ESD.83
• November 13, 2001

Zhou Dynasty Bronze Wine Vessel 11th century B.C.
2
Continuum of Systems Thinking

• Shifts in Systems Thinking in Manufacturing
• Manufacturing becoming more systems driven
• necessitated and facilitated by customer demand
  and availability of technology
• System boundary shifting and systems getting more
  complex
• around the enterprise rather than process
• mass customization

3
Characteristics of Systems

• Environment/Boundary - Manufacturing systems
  exist within an environment that is external to
  them the boundary "defines" the system
• Parts - which are themselves systems
• Processes - things go on inside the system that
  ensure that it fulfils its purpose and survives
• Input and Output - things enter the system from
  the environment and enter the environment from
  the system
• Dynamic - change in non-linear ways
• Hierarchical, Complex etc.

4
Key System Characteristicsin the Context of
Manufacturing

• Manufacturing is an open system
• interactions with the environment
• eg supplier dependence, customer preferences,
  economy, availability of raw materials etc.

5
Key System Characteristicsin the Context of
Manufacturing

• Internal Processes, Structures and Interactions
• things go on inside the system that ensure that
  it fulfils its purpose and survives
• 12 variables
• 66 linear (1110 .. 1)
• 220 triangular relations
• 12!/(3!9!)

6
Key System Characteristicsin the Context of
Manufacturing

• Feedback the control mechanism in manufacturing
• measuring the output of the system, comparing the
  output with a standard and using any difference
  to modify subsequent input to ensure that the
  output conforms to the required standard

7
Craft Production

• 1885
• machine then harden
• fit on assembly
• customization
• highly skilled workforce
• low production rate
• high cost

• Evidence of Systems Thinking
• internal relationships among sub-tasks FEW
• interactions with the environment MINIMAL
• feedback loops ELEMENTARY, ONE?

8
Mass Production

• Ford (1908) combined in an assembly line to mass
  produce the Model T
• Eli Whitney - Interchangeable parts
• Elihu Root - Division of labor
• Oliver Evans - Continuous flow production
• Frederick Taylor - Time and motion studies to
  improve efficiency of workers
• After assembly line took off, a car took 10
  seconds to assemble instead of 12 hours and 20
  mts
• William Durant (1904) recognized manufacturing as
  more than designing new products or improving
  production systems. Made GM/Chrysler large
  complex corporations

9
System Boundaries Onion not Parfait

• Layer 1 Around the Manufacturing Process Itself

Input
Output
Process
Feedback
10
Mass Production

• Evidence of Systems Thinking
• internal relationships among sub-tasks RISING
• interactions with the environment MODERATE
• feedback loops FEW

• 1913
• parts interchangeability
• moving production line
• production engineering
• workers as automatons
• unskilled labor quality problems
• high production inflexible
• low cost

11
Toyota Production System (Lean)

• Initially fed by information and automation, but
  soon realized needed new concepts - ways of
  thinking
• lifecycle
• overlapping steps
• not solely concerned with the technology of
  making the widget but also with the role of
  people, the organizing processes and the
  relationships and interactions

12
Systems Boundaries II

• Layer 2 Entire Manufacturing Enterprise

Materials Management/ Purchasing
HR
Design
Production Planning
Prototyping
Feedback
Manufacture
Sales
Shipping
Marketing
13
Toyota Production System (lean manufacturing)

• 1955
• workers as problem solvers
• worker as process owner enabled by training,
  minimal inventory, JIT
• eliminate waste
• responsive to change
• low cost
• high productivity/quality

• Evidence of Systems Thinking
• internal relationships among sub-tasks TIGHT
• interactions with the environment SIGNIFICANT
• feedback loops TIGHT

14
Mass Customization

• What it is
• delivery process through which mass-market goods
  and services are individualized to satisfy a very
  specific customer need, at an affordable price.
• serves as the ultimate combination of
  "custom-made" and "mass production."
• rapidly emerging as the organizing business
  principle of the 21st century.
• based on a product strategy, not just product

Dell Computers
15
MC System Characteristics

• Dynamic
• Feedback loops
• process tech loop
• integrate design and sales before production
• product tech loop
• defines the product types, rates, features and
  options.
• define all the associated marketing information
• Technology Intensive
• Interactive media, eg Internet
• Shared customer information systems

Source http//www.managingchange.com/masscust/new
para.htm
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System Boundaries III

• Layer 3 Societal - Manufacturing a sub-part of
  society

Transportation
International markets
Manufacture Enterprise
Education
Suppliers
Competitors
Government regulations
Technological Change
Import/export
Society/Family Values
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Mass Customization

• 2000
• small volumes - in many cases, lot sizes of one
• competitive cost, timely deliveries
• move away from centralized manufacturing to more
  distributed production.
• a high degree of product/service flexibility,
• reduced inventory risk, and a competitive edge in
  the marketplace.

• Evidence of Systems Thinking
• internal relationships among sub-tasks TIGHT
• interactions with the environment BASIS OF
  APPROACH
• feedback loops TIGHT

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Summary Continuum of Systems Thinking
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Why the Shift? New Paradigm

• What has changed about manufacturing?
• It is now globalized, networked, customized,
  digitized
• This has changed the definition of manufacturing
• old - transformation of raw materials into useful
  goods
• new - general transformation of resources to meet
  human needs